Borrowing, then reinvesting against stock one holds


There was a thread over in r/investing (here) where people were talking about borrowing against investments you own.

This got me thinking about Nomura Shouken’s Loan service where they allow you to borrow upto half of what you own in stock/bonds etc at a rate of 1.5% PA.

I was thinking of placing my current US stock investments there, then taking out the maximum to further invest with an outlook to return the loan over 5 years.

Seems like a reasonable way to increase the amount of money one can invest but would like to hear if anyone has done this?

by zumniga

Leave a Reply
You May Also Like